US Recession Worries Remain; Young Folks Are Wise to Prepare for the Worst

The talk of US recession has subsided compared to the end of last year when most analysts proclaimed that the end was nigh. There are indicators pointing towards recession, however, and the happy data over the last month may be short-lived.

The Jobless Claims data becomes more important each week and last Thursday is 192K Claims once again pulling the 4-week MA higher (towards recession) so each data point now becomes critical.

Unemployment Claims Chart

Also, the Philly Fed Mfg Index is hinting strongly that the recession is at hand.

Philly Fed Chart

Also, the US housing market has been in a recession since Christmas now 2 months along.

US Housing Recession Chart

Also, the 2-10 spread is hooking higher which ushers-in the US recessions.

2-10 Yield Spread Chart

But all that mumbo-jumbo, charting and technical analysis is not the reason for this message.

All of you young folks under 30 or 35 years old do not understand recession hardship. The Federal Reserve has been goosing the US stock market to protect the wealthy class since March 2009. Thus, during the housing bubble and financial market collapse of 2008-2009, many of you may have been teenagers, or younger, or some also older in your early 20's, but few of these young minds were fixated on financial markets back then.

So the charmed years continue from 2009 to present where stocks go up forever, jobs are plentiful forever, etc..., and most young folks believe this is a given and the way the economy works. You are going to get your head handed to you on a platter over the next couple years.

Now is the time to prepare for a recession. If young, you must realize that those first years of your life are likely going to be your easiest and life will become a lot harder going forward. Many of you will lose your jobs. Oh, but you immediately exclaim that the company cannot survive without you. You say that jobs are plentiful and you will be hired elsewhere even if canned. What a naïve mind. Don't be stupid.

Keystone had the rose-colored glasses on when he graduated at the top of his class decades ago and was slated to quickly move up into upper management of Dravo Corporation a huge international company. It is an interesting story what followed and is provided to help all of you young folks understand what you are going to experience going forward.

Get yourself prepared for the coming recession. It is best to cut corners now. For example, maybe it is a good idea to get rid of the monthly subscription fees for channels and shows that you never watch anymore; did you ever need to watch them in the first place? Save your money. Sit down and figure out what you will do when you lose your job, or your spouse or partner loses theirs, or if both of you lose your jobs. Go through the math and scenarios so you are prepared when your boss calls you in on the carpet and tells you to get out within 15 minutes.

Keystone's recession article maintains popularity during the last few years. The COVID-19 pandemic was a curve ball the last three years. The COVID-19 recession was a quickie and painless since the US government and Fed provided endless quantities of money (creating deeper future debt). The real recession deal is coming and it will not be blue skies and lollipops.

Recessions are expected every 6 or 8 years but the easy money has negated the business cycle and given young folks false expectations for the economy, markets and stocks. Thus, if you are under 30 or 40 years old, take a read and prepare yourself for the coming storm;

"Clueless Millennials Must Prepare Financially, Mentally and Emotionally for the Coming Recession; A PSA (Public Service Announcement) for Millennials Explaining the Ugly Realities of Economic Recession"